TILA-RESPA Final Rule - How It Impacts You
Nov 25, 2013 | Realtor Resources | Share:
The Consumer Financial Protection Bureau has released the new TILA-RESPA final rule. This rule provides easier to use forms and consumer friendly information. The goal is to help consumers understand their options and avoid costly surprises at closing.
Previous rules were in place for over 30 years and often considered confusing for consumers as well as untimely, with some information not provided until closing. The new rule replaces the current forms with two new ones called Loan Estimate and Closing Disclosure. The Loan Estimate form will be provided at the beginning of the loan process to allow consumers to easily shop around for the best product for them. The Closing Disclosure Form will be provided 3 days before closing and uses a similar format as the Loan Estimate Form for easy comparison. Both documents use plain language and makes it clearer to the consumer the terms of their loan.
The TILA-RESPA final rule and the accompanying documents will impact how real esate agents and mortgage lenders across the nation as well as here in Alabama conduct business. And while these changes are not mandatory until 8/15/2015, knowing what's on the horizon and being prepared will give you a leg up on your competition. To learn more click here and check in regularly with us here at South Oak Title & Closing. If you are a mortgage consumer in Alabama and want to learn how these changes benefit you, click here